Derivatives

Derivatives are financial instruments that derive from an underlying asset such as a commodity, bond or currency. SCI’s derivatives coverage focuses on the structuring and trading of derivatives relating to securitisation and structured credit. The instruments covered are primarily: credit default swaps (CDS) and options; correlation trading through index tranches; total return swaps on credit and loan indices and baskets; bespoke tranches; and other new and unusual synthetic structures.

  • Credit event definitions

    UTP category brings less uniformity

    The EBA’s guidelines on default definitions have brought less uniformity to credit event d...

    News Analysis    20 March 2020
  • Close relationship

    CRT documentation should evidence intentions

    When structuring a capital relief trade, the documentation should evidence the intentions of the par...

    News    20 March 2020
  • Short-term volatility

    SRTs on hold, although 2H20 rebound expected

    Capital relief trade issuance has been postponed until the second half of the year due to the corona...

    News Analysis    19 March 2020
  • EIB mulls SME ABS purchase plan

    Sector developments and company hires

    Dealer credit facility launched The US Fed has established a Primary Dealer Credit Facility (PDCF)...

    Market moves    18 March 2020
  • Pandemic response

    DNB lowers bank buffers amid outbreak

    Dutch central bank DNB has lowered the capital buffers for Dutch banks and postponed the introductio...

    News    18 March 2020
  • Multi-tranching?

    Investor diversification raises triple-tranche prospects

    Seer Capital sees a future for triple tranche structures in significant risk transfer transactions....

    News Analysis    13 March 2020
  • Definition debate

    Call for coalescence around ESG standards

    Impact is still being defined in the capital markets, both at a conceptual level and in terms of gen...

    News Analysis    12 March 2020
  • Regulatory events

    Standard Chartered amends Gongga SRT terms

    Standard Chartered has amended the regulatory event definitions for the class A notes of a corporate...

    News    12 March 2020
  • Opaqueness premium

    Regulatory RWA variability highlighted

    In its latest Working Paper, the BIS unveils a new measure of risk-weighted asset variability &n...

    News    4 March 2020
  • Bulgarian micro loan guarantees inked

    Sector developments and company hires

    Bulgarian guarantees The EIF has signed new guarantee agreements with Unicredit Bulbank, United Bul...

    Market moves    4 March 2020
  • Green light

    OCC gives regulatory approval to JPM CRT

    JP Morgan Chase has won favourable regulatory treatment from the Office of the Comptroller of the Cu...

    News Analysis    3 March 2020
  • DLT litigation ABS on the cards

    Sector developments and company hires

    Acquisition Pretium Partners has acquired the investment management business of Latigo Partners....

    Market moves    2 March 2020
  • Provisioning hedge

    Landmark Italian SRT inked

    AmTrust International has completed its inaugural capital relief trade, which references a &euro...

    News    2 March 2020
  • Risk transfer round-up - 28 February

    CRT sector developments and deal news

    Banca Monte dei Paschi di Siena is rumoured to be readying an SME SRT for next month, with the count...

    News    28 February 2020
  • High-profile bankers exit SRT

    Sector developments and company hires

    SRT departures Last week saw a couple of high-profile exits from SRT banking teams in London. Struc...

    Market moves    24 February 2020
  • Moving down

    Insurers target first-loss CRTs

    Insurers are now targeting the first-loss tranches of capital relief trades, having eyed the senior...

    News Analysis    21 February 2020
  • SRT fund launched

    AXA engineers return

    AXA Investment Managers has completed its eighth partner capital solutions fund. With the move, the...

    News    21 February 2020
  • Risk transfer round-up - 20 February

    CRT sector developments and deal news

    Further details have been revealed of CRT transactions that were completed in 4Q19. One is another B...

    News    20 February 2020
  • SME double

    EIF closes pair of EFSI guarantees

    The EIF has closed two new guarantee agreements supporting European SMEs, both of which are supporte...

    News    19 February 2020
  • Risk transfer round-up - 13 February

    CRT sector developments and deal news

    Mediobanca is readying another capital relief trade in addition to its inaugural SRT that will close...

    News    13 February 2020
  • Risk transfer boost

    CRT issuance breaks record

    Capital relief trade issuance broke a record in 2019, with volumes reaching €7.5bn. This ma...

    News Analysis    13 February 2020